Microsoft Surges on Earnings Beat

Microsoft shares jumped as it posts gains in its Devices and Consumer, and Commercial segments.

NEW YORK (TheStreet) -- Microsoft (MSFT) shares surged 4.8% to $35.39 in after-hours trading after the tech giant beat on both first-quarter earnings and revenue, as its devices and consumer, and commercial segments yielded upbeat results.

Microsoft said its first-quarter fiscal 2014 net income rose to $5.244 billion, or 62 cents a share, from $4.466 billion, or 53 cents a share the prior year as revenue rose 16% to $18.53 billion for the period ended September 30. Wall Street was looking for earnings of 54 cents a share on revenue of $17.79 billion, according to a survey of analysts by Thomson Reuters.

During the quarter, Devices and Consumer revenue grew 4% to $7.46 billion and Commercial revenue grew 10% to $11.20 billion.

Within the Devices and Consumer segment, Windows OEM revenue declined 7%; Windows Pro revenue grew for the second consecutive quarter; Surface revenue grew to $400 million with sequential growth in revenue and units sold over the prior quarter; and search advertising revenue increased 47%, driven by a rise in revenue per search and volume.

In the Consumer unit, SQL server revenue were up by the double-digits, with SQL Server Premium revenue growing more than 30%; Lync, SharePoint, and Exchange collectively increased by the double-digits; and commercial cloud revenue soared by 103%.